Debt: Senegal meets its creditors on October 6 and pleads for rescheduling

Senegal gathered its external creditors on Tuesday, October 6, 2026, to present its financial situation and reform program, marking the first step toward restructuring its public debt. The meeting, organized by the Ministry of Economy, Finance, and Planning, was held remotely with the participation of the International Monetary Fund, according to the website Œil d'Afrique.

The IMF intervened only in the capacity of its "good offices": it outlined the main points of the agreement negotiated with Dakar and certain elements of its lending policy, but substantive discussions on the restructuring remain the responsibility of the Senegalese government and its creditors. Among the latter are China, France, India, Kuwait, Germany, and Japan, reports the Senegalese website Senego.

"We can pay, but let us breathe"

It is in these terms that Senego summarizes the position defended by Dakar: to honor its commitments, but to obtain more time. Three avenues are on the table according to the same media outlet: extending repayment deadlines, lowering interest rates paid to bondholders, or, a more radical scenario, temporarily suspending certain payments. Extending the deadlines appears to be the preferred option, according to RFI as cited by Senego. Senego mentions a debt level equivalent to 130% of GDP. No financial decisions were expected from this initial contact, which is intended to lead to the formation of an official creditors' committee.

A $2.2 billion program dependent on these assurances

The stakes are considerable. The agreement reached with the IMF, announced on September 1, 2026, concerns an extended credit facility of $2.2 billion (1,537.1 million in special drawing rights) for the 2026-2029 period, details Œil d'Afrique. However, the Fund's executive board has not yet set a date to review it: its approval depends precisely on the financing assurances that creditors agree to provide.

The figures highlight the scale of the adjustment currently underway. The audit of public finances established a budget deficit of 13.4% of GDP in 2024, reduced to 6.4% in 2025. Growth, which was 6.7% in 2025, is projected at 2.7% for 2026.

Regional debt protected

Dakar has explicitly excluded from the scope debt denominated in CFA francs contracted on the WAEMU regional market, in order to preserve the confidence of investors on the continent; total return swaps, however, are included. The country is following the path of the G20 Common Framework, already used by other African states under pressure.

This choice to protect the regional market says something about the African equation: negotiating with external creditors without weakening the financing channels that the continent has built itself.